What Would Accreditation Change Mean for Real Estate Investors?

By Darian E. Fernandez | December 4, 2023

 

 

Edward Fernandez, president and CEO of 1031 Crowdfunding, lends his thoughts to Kiplinger on what a change in accreditation laws would mean for real estate investors. By democratizing access, enhancing the robustness of the investment environment and encouraging a broader range of projects, these changes would herald a new era for real estate development and investment.

Recent proposed congressional changes to investor accreditation laws promise to leave a long-term mark on the commercial real estate landscape.

Previously, only achievable by having a net income of over $1 million or more than $200,000 in annual net earned income during the last two years, the new proposal from the House of Representatives will allow investors to achieve accreditation status by passing a test that proves their “financial savvy.”

The test, which would be administered by FINRA, would be provided free of charge and would assess the individual’s competency and knowledge of the private market. It would also address topics like various securities both public and private, corporate governance and risks associated with private assets, like limited liquidity and different disclosure rules.

Click here to read the full article…

This material does not constitute an offer to sell or a solicitation of an offer to buy any security. An offer can only be made by a prospectus that contains more complete information on risks, management fees and other expenses. This literature must be accompanied by, and read in conjunction with, a prospectus or private placement memorandum to fully understand the implications and risks of the offering of securities to which it relates. As with all investing, investing in private placements is speculative in nature and involves a degree of risk, including loss of your principal. Past performance is not necessarily indicative of future results and forward-looking statements and projections are not guaranteed to achieve the results described and your actual returns may vary significantly. Investments in private placements are illiquid in nature and there may be no secondary market or ability to sell the investment should the need for liquidity arise. This material should not be construed as tax advice and you should consult with your tax advisor as individual tax situations will vary. Securities offered through Capulent, LLC Member FINRA, SIPC.

Coffee mug, eyeglasses, and laptop sitting on table

GET OUR FREE EBOOK!

Sign up for our newsletter and receive a free copy of our ebook.

Includes tips on how to:

  • Increase Cash Flow Potential
  • Lower Your Closing Risk
  • Diversify Your R/E Portfolio
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.